Advanced Product Quality Planning (APQP)

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Advanced Product Quality Planning (APQP) Automotive & Semi-conductor products Cooperation results Customer & supplier

Overview Presentation Outline STMicroelectronics short company profile APQP - Principles (APQP = Advanced Product Quality Planning) Quality vs. Business vs. Communication Business model & Liability Tool positioning Example, screen shot Business model Tool performance Questions & Answers (30 min) Page 1

STMicroelectronics Short company profile Some key data (basis: year 2007)... #5 of semi-conductor companies, 10 Billion US$ Revenue Broad range supplier Page 2

STMicroelectronics Short company profile Additional highlights High focus on Automotive (15% of revenues) Several certifications (ISO/TS16949, ISO14001,...) Different awards, Quality, Environment,... Page 3

Some personal Information 2 min. introduction about myself... to explain also the focus of evaluation which is shown afterwards Since 12 years at ST - Automotive Business Unit / Division Different positions in Technical Sales & Marketing Project, Foundry, ASICs, Micro-controller with eflash (Customer oriented) Program, Quality (PPAP, APQP,...) Actually Customer Requirements Management (Contracts, Agreements,...) Project, micro-controller cooperation between ST and another well known semi-conductor company Internal certified trainer for different courses regarding project and product devlopment Page 4

APQP Principles AIAG (Automotive Industry Action Group) Standards Common result we need fine tuning for semi-conductors ( standard comes originally from a mechanical world ) And for semi-conductors? we need different APQP levels for ASSPs & ASICs or uc with eflash (added value vs. follow-up = costs) final result from APQP has to be also the major input for PPAP (Production Part Approval Process) Page 5

Common understanding... Business model & Liability Long term business relationship is the target of both companies (basic business rule for Automotive...) Customer & Supplier have to work together to have success (ASICs, high temperature application, safety,...) Data will be entered basing on best known status No legal liability paragraphs or direct data to control production (innovation and good communication & spirit has high priority) Early warnings is in place (regular project team and reviews) Page 6

Quality vs. Business vs. Communication Who is involved...? Common result: added value for both companies (project confidence vs. work effort = costs) Risk evaluation matrix needs to be reasonable (electronics vs. mechanics) Risks have to be understandable and must be expressed clearly (design vs. marketing vs....) Constructive interaction & communication (more then just pure checklist follow-up) Outputs needs integration in the review process Page 7

Tool positioning Tool positioning vs. Development process Supply-chain of information for Quality & project vs. internal processes Tool positioning vs. development process & other tools Page 8

Tool Supplier view Screen shot Structured data Indicators (GYR) Same basis for discussion Customer/Supplier Report Page 9

Business Data security Access rights Data entry - concept User friendliness Data Import/Export Project Risk Safe launch Future trends relative score [%] Business model Proposal for improvement Semi-conductor related key items Evaluation matrix defined by customer can still be improved Future trends AIAG gives some good guidelines, but we need more! (SW, application) Safe launch there are more then just technical risks... Introduce more link of APQP vs. PPAP in internal working procedures (development production release) Data storage 15 years data storage Business model 30 25 20 15 10 5 0 Business Model - Customer & SupplyOn's Tool performance evaluated items max score result There was and is a very constructive spirit between our customer and ST to discuss very openly results and needs from both side! Thank you for that! Page 10

Business Data security Access rights Data entry - concept User friendliness Data Import/Export Project Risk Safe launch Future trends relative score [%] Tool performance Tool evaluation Positive items secure fast & user friendly tool clear status overview supports interaction between Customer & supplier 30 25 20 Business Model - Customer & SupplyOn's Tool performance 15 10 max score result 5 0 evaluated items Page 11

Business Data security Access rights Data entry - concept User friendliness Data Import/Export Project Risk Safe launch Future trends relative score [%] Tool performance Tool some proposals for the future Project introduction of action follow-up Risk should include a weighting of items (can also be a generic Project FMEA) Data export very limited for supplier (download of a snap shot) Data storage/format how to ensure data access in some years? 30 25 20 15 10 5 0 Business Model - Customer & SupplyOn's Tool performance max score result evaluated items We are confident that with a fair effort (=costs) also these items can be improved to provide a suitable and state-of-the-art solution. Attention: We have to consider the Tool & Business model together Page 12